Retirement Senarios

[KTMarty]

Here are two scenarios for retiring. Which one would you do and why.

1) Get pension paid $4000 a month for life (expected to live 30+ yrs)
2) Get a one time lump sum payment of $800k

Case 1 would not be able to invest the $4k per month since would be use for expense.
Case 2 would be invest the $800k and take out $4k a month for living expenses.

Case 1 take the $4k a month and not worry about the market and live happy every after.

or go for the gusto:

In running the DCAModelCalculator from Dave Smith Drip site I get the following numbers

Case 2a
Intial investment $800k
Outgoing expense  $4k
Div yield   3%
Div growth 5%
Std deviation 4%
Beta 0 (so not too run the difference cases)
In 39 yrs I would have $204k left

Case 2b
Going to the opposite end buying high div
Intial investment $800k
Outgoing expense  $4k
Div yield   8%
Div growth 1%
Std deviation 4%
Beta 0 (so not too run the difference cases)
In 30 yrs I would have $4,469,552 left

Case 2c
Buying high div taking out enough which will run out in 30 yrs
Intial investment $800k
Outgoing  expense  $6200
Div yield   8%
Div growth 1%
Std deviation 4%
Beta 0 (so not too run the difference cases)
In 30 yrs I would have $36k left

Is Case2b unrealistic?
For case 2b & 2c how many high end 8% div stock would you buy? Which ones?
Case2c is nice if you do not expect to have any unexpected expenses at the end of your life but who can predict that.


Have fun and submit all you ideas.